Japan Unveils $110B Stimulus Package — Will Bitcoin Benefit?
Japan approved a massive stimulus package, causing the yen to weaken and bond yields to rise, creating mixed signals for Bitcoin.Summary
Japan's cabinet approved a 21.3 trillion yen ($135.5 billion) stimulus package aimed at easing rising prices, boosting growth, and increasing defense spending. This announcement immediately weakened the yen to its lowest level since January 2025 and pushed the 40-year bond yield to a record high. The package is intended to lift real GDP, but market observers remain cautious about continued fiscal stimulus, reflected in rising credit default swap prices. The currency weakness raises concerns over potential government intervention if the USD/JPY ratio nears 160. For Bitcoin and risk assets, the increased liquidity from the stimulus is generally a tailwind, potentially driving Japanese investors toward alternatives like Bitcoin due to the weak yen. However, rising bond yields risk unwinding the yen-carry trade, which could force institutional deleveraging and subsequent sales of assets, including Bitcoin.
(Source：BeInCrypto)